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Forex Trade Setups Commentary: EURUSD Update, 21st Ocotober 2010

The EURUSD pushed higher early in today’s trading session but could not sustain itself above 1.4000. Price quickly got rejected lower back under this resistance area and closed the day around 1.3920.

We can see in the chart below today’s bearish rejection candle formed a false break of the highs near the recent resistance around 1.4000, for price to continue lower it will need to stay below this level. The next support comes in near the lows from this week around 1.3700.

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Commentary:

The U.S. dollar strengthened today, the euro climbed to $1.4050 against the greenback early in the session but later in the day it was down to $1.3820.

The Japanese yen closed today neutral to stronger against the other majors except for a modest loss to the surging U.S. dollar.

The Dow added 38.60 points, or 0.35 percent, the S&P 500 add 2.09 points, or 0.18 percent, and the Nasdaq gained 2.28 points, or 0.09 percent.